Tuesday, March 02, 2010

Cult Stock

What is a Cult Stock?

A Cult Stock is a stock that has insignificant fundamental value but a large investor following. People are lured to cult stocks because of big stories, normally regarding big contracts about to be signed or newest discovery in oil, gold or drugs that can do wonders.
The majority of Mesdaq counters (now renamed AEC counters) are Cult Stocks. Many people got their fingers burned buying there counters. Don't go for Cult Stocks. The odds of winning buying Cult Stocks are heavily against you.